Bike-rental startup ofo lands series D+ backed by Alibaba’s Ant Financial

TechNode
Bike-sharing startup Ofo planning India entry in 2018, but civic behaviour is a concern

The announcement came less than two months after ofo secured a US$450 million series D in March

The funding spree continues in China’s bike-rental sector. Bike-rental startup ofo announced over the weekend that it raised an undisclosed amount in its Series D+ from Alibaba’s financial arm Ant Financial.

Under the deal, ofo cooperate with Ant Financial in the fields of e-payment, credit system and globalisation process.

The announcement came less than two months after the bike-rental startup secured a US$450 million series D in March, which the company said was the largest amount in a single funding round in the sector.

Prior to the new funding round, ofo had already struck a strategic cooperation deal last month with Sesame Credit, the social credit scoring system developed by Ant Financial, allowing Shanghai ofo users with a Sesame Credit score of 650 or higher can register on the app without making the RMB99 (US$14) deposit.

Also Read: Gobee.bike launches in Hong Kong, raises seed funding led by Swiss Founders Fund

Ant Financial CEO Jing Xiandong said the company will set an example for the bike-rental sector through this cooperation with ofo, and fully unleash their potential in the mobile platform, credit management, online payment, risk management, and safety control.

It is no wonder ofo chooses to team up with Ant Financial, which is the operator of Alipay and other Alibaba-backed financial services, while ofo’s arch rival Mobike has worked closely with WeChat (Mobike’s bike-rental feature was added to WeChat Wallet last month). In China’s third-party online payment, Alipay and WeChat Payment remain the top two players, each with a 54.1 per cent and 37.02 per cent share in the fourth quarter of 2016.

Dai Wei earlier revealed the company is worth US$2 billion, takes in over RMB10 million (US$1.4 million) in revenue a day, and will hopefully turn a profit this year.

 

The article Bike-rental startup ofo lands Series D+ backed by Alibaba’s Ant Financial first appeared in TechNode.

The post Bike-rental startup ofo lands series D+ backed by Alibaba’s Ant Financial appeared first on e27.